Monthly Metal Review

Copper (April 2019)

There were many cross currents affecting the copper market in April, exchange copper stocks were generally rising, prices were holding up well, there was tightness in concentrate supply that pushed treatment charges and refining charges (TCRC) to multi-year lows, with the commissioning of new smelter capacity also adding to the lower TCRCs, while maintenance breaks at other copper smelters helped partially counter the tightness. The transport blockage at MMG’s Las Bambas mine initially sent TCRCs lower as concentrate supply was hit. TCRCs dropped in steps to $62.10 per tonne and 6.21 cents per pound in mid-April, from $74.30/tonne and 7.43c/lb in mid-February, according to Fastmarkets. The start up of the 300,000 tonne per year (tpy) Guangxi Nangua smelter and Yunnan Copper’s 400,000tpy Chif-eng smelter, will now increase demand for copper concentrates. That said, there may be some relief in the short term as mainte-nance at China’s 450,000 tpy Jinlong smelter and at the 250,000 tpy Shandong Humon smelter in April and at the 400,000 tpy Xiangguang smelter during April and May, may help ease some of the tightness, that is if the low TCRCs attract spare concentrate into the spot market. But, once the maintenance breaks are over then we will have a situation where increased smelter capacity will be competing for limited concentrate supply. The situation could get even worse from July when Chinese regulations impose even stricter limits of scrap imports. This is all happening at a time when the only new notable supply is coming from the ramp up of First Quantum’s 350,000tpy Cobre de Panama copper mine and the 100,000tpy expansion of Southern Copper’s Toquepala mine in Mexico, while concentrate output at the Grasberg copper mine in Indonesia is expected to fall to 1.2 million tonnes (cop-per concentrate) this year, from 2.1 million tonnes in 2018, as the mine transitions from open pit to underground. Canadian miner Lundin Mining has declared that it is buy-ing Yamana Gold’s Chapada mine in Brazil for over USD 1 mil-lion. The sale process is expected to be complete in third quarter of this year. Codelco and Enami are forming a joint-venture company to explore the feasibility of developing the Llurimagua project in Ecuador. Rio Tinto is to commit $302 million of capi-tal to advance its Resolution Copper project in Arizona, the project is 55 percent owned by Rio Tinto and 45 percent by BHP, some $2 billion has now been invested in the project since 2004 – this highlights how long some projects can take to come on line.

Daily Prices

May 2019

Copper
Date(Fix.) ($/MT)
Average 6078.19
23-05-2019 5860
22-05-2019 5920
21-05-2019 6004
20-05-2019 5985
17-05-2019 6025
16-05-2019 6089
15-05-2019 6002
14-05-2019 6007
13-05-2019 6042.5
10-05-2019 6135.5
09-05-2019 6112
08-05-2019 6103
07-05-2019 6174
03-05-2019 6180
02-05-2019 6214
01-05-2019 6398
Silver
Date(Fix.) ($/OZ)
Average 14.68
23-05-2019 14.48
22-05-2019 14.435
21-05-2019 14.43
20-05-2019 14.415
17-05-2019 14.48
16-05-2019 14.795
15-05-2019 14.815
14-05-2019 14.755
13-05-2019 14.66
10-05-2019 14.795
09-05-2019 14.82
08-05-2019 14.93
07-05-2019 14.83
03-05-2019 14.655
02-05-2019 14.675
01-05-2019 14.88
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1282.74
23-05-2019 1275.95
22-05-2019 1274
21-05-2019 1276
20-05-2019 1275.25
17-05-2019 1285.8
16-05-2019 1295.55
15-05-2019 1298.9
14-05-2019 1297.6
13-05-2019 1282.95
10-05-2019 1285.4
09-05-2019 1284.1
08-05-2019 1287.75
07-05-2019 1281.3
03-05-2019 1270.05
02-05-2019 1271.45
01-05-2019 1281.8
Date(Fix.) ($/OZ)
Average 1283.37
23-05-2019 1279.8
22-05-2019 1273.9
21-05-2019 1273.575
20-05-2019 1276.05
17-05-2019 1283.3
16-05-2019 1293.625
15-05-2019 1299
14-05-2019 1298
13-05-2019 1289.275
10-05-2019 1286.25
09-05-2019 1285.1
08-05-2019 1286.475
07-05-2019 1281.25
03-05-2019 1274.3
02-05-2019 1271.2
01-05-2019 1282.8
Date(Fix.) ($/OZ)
Average 1284.00
23-05-2019 1283.65
22-05-2019 1273.8
21-05-2019 1271.15
20-05-2019 1276.85
17-05-2019 1280.8
16-05-2019 1291.7
15-05-2019 1299.1
14-05-2019 1298.4
13-05-2019 1295.6
10-05-2019 1287.1
09-05-2019 1286.1
08-05-2019 1285.2
07-05-2019 1281.2
03-05-2019 1278.55
02-05-2019 1270.95
01-05-2019 1283.8
Lead
Date(Fix.) ($/MT)
Average 1822.38
23-05-2019 1781
22-05-2019 1787
21-05-2019 1795.5
20-05-2019 1797
17-05-2019 1809
16-05-2019 1826
15-05-2019 1780
14-05-2019 1768
13-05-2019 1785
10-05-2019 1823
09-05-2019 1855
08-05-2019 1860
07-05-2019 1867
03-05-2019 1880
02-05-2019 1859
01-05-2019 1885.5
Zinc
Date(Fix.) ($/MT)
Average 2761.84
23-05-2019 2668
22-05-2019 2713
21-05-2019 2723
20-05-2019 2705
17-05-2019 2755
16-05-2019 2781
15-05-2019 2730
14-05-2019 2715
13-05-2019 2719.5
10-05-2019 2751
09-05-2019 2725
08-05-2019 2764
07-05-2019 2835
03-05-2019 2867
02-05-2019 2832
01-05-2019 2906
Tin
Date(Fix.) ($/MT)
Average 19651.25
23-05-2019 19720
22-05-2019 19650
21-05-2019 19750
20-05-2019 19675
17-05-2019 19625
16-05-2019 19675
15-05-2019 19850
14-05-2019 19890
13-05-2019 19465
10-05-2019 19650
09-05-2019 19475
08-05-2019 19640
07-05-2019 19660
03-05-2019 19375
02-05-2019 19550
01-05-2019 19770
Nickel
Date(Fix.) ($/MT)
Average 11969.69
23-05-2019 11870
22-05-2019 11965
21-05-2019 12030
20-05-2019 11915
17-05-2019 12025
16-05-2019 12215
15-05-2019 11930
14-05-2019 11820
13-05-2019 11730
10-05-2019 11865
09-05-2019 11710
08-05-2019 11965
07-05-2019 12050
03-05-2019 12170
02-05-2019 12125
01-05-2019 12130
Cobalt
Date(Fix.) ($/MT)
Average 34718.75
23-05-2019 34500
22-05-2019 34500
21-05-2019 34750
20-05-2019 34750
17-05-2019 34750
16-05-2019 34750
15-05-2019 34750
14-05-2019 34750
13-05-2019 34750
10-05-2019 34750
09-05-2019 34750
08-05-2019 34750
07-05-2019 34750
03-05-2019 34750
02-05-2019 34750
01-05-2019 34750